All Forum Posts by: Mark Updegraff

Got my hoodie order in!  Nice job guys!!  I'll spread the word and increase that number!!

Hey Nick,

       We provide General Contracting here in Rochester & work with the best contractors.  I would be happy to assist or recommend other top notch GCs.

Sincerely,

Mark Updegraff

Welcome Jonathan!

       We've got a strong Rochester presence on BP and you're in the right spot for excellent advice on the local market.  Looking forward your contributions & growth!

Mark

We're always here to help!  Feel free to hit me up anytime.  PM me if you want my cell number.  If you're looking to earn money and have skills we're always short handed. 

Cheers,
Mark

 I don't doubt you close deals this way.  The proof is in the pudding as they say and I still think my clients make more money than those that chase listing agents.  Having a dedicated buyer's agent with YOUR BACK yields to more wins, and better wins.  This is my opinion as a REALTOR that is involved in a ton of agency for investors. 

Thanks @Jason A.  you are correct.  I should be implementing this document as part of my procedure.  I've been licensed for 2 years and am trying to close as many transactions as possible while strategically building the businesses.  I was just reminded of this by another mentor when a client thought they were doing me a favor by "not bothering me because it was a small deal" and I almost lost a transaction and had to pay a referral fee on it for the stupid phone call / showing.  This was after showing the client a 1/2 dozen inexpensive houses... Proper paperwork implementation!  I'll dig up my state's document and review it now!!

I'm a licensed broker here in Upstate NY and I'm amazed at the lack of understanding that new investors have when it comes to agency.  A close colleague and mentor in the business put it quite simply when I shared my frustrations with time sucking clients who then turn to the listing agent to write an overpriced offer on a terrible investment.   He said, "My friend, they don't care if you put steak on your table or hamburger helper"

 As someone who points out all the flaws, runs conservative pro formas and struggles to attain REAL deals for my clients, it drives me absolutely bonkers when something like this happens.  What the "investor" doesn't realize (but will down the road) is that the listing agent just wants to sell THAT property.  They don't care how it compares to anything else.  They just have to get the seller and the buyer to come to terms on price, it is completely irrelevant to other opportunities.  Sometimes overpriced properties don't sell because the seller is un-realistic about it's value.  Enter seller's agent to sugar coat things and sell investments that are more like an anchor for a capital starved young investor.  

I'll give a recent example of how this situation may play out for those investors that believe always contacting the listing agent is the best way to "get a deal"

I received an email this morning from a client whom I have previously given much advice on the local market he is interested in, shared resources, shared contacts etc.  Lot's of back and forth, a sit down meeting where I paid his tab, etc.  In his most recent email he said something like this "I figured I would check with you before I contacted the Listing agent"  Great!  This is about 1 step better than going behind my back after I've allocated some of my most precious resource to you (my time).  Here is a case where though I can obviously see either their naivety on how I make my money, OR just the plain downright inappreciativeness that some people have.  I've learned a lot in this industry since I started investing about a decade ago.  But what I think is the most important aspect to building a successful real estate business is appreciating those that help you along your way.  Had I treated my team the way some of these new "investors" do, I would not be where I am.  I can only hope that this thoughtlessness will come full circle as they struggle to find deals and rely on selling agents so they can "get a better deal"  

The jury is still out on this client.  We will see how he responds to my email.  In this case he is interested in an apartment complex that is a 1/2 way house for convicts.  Do you think the LA would disclose that info?  Probably not.  And I've viewed the LA's pro forma.  Not even ball park close to my pro forma on the same property... Plus the insight that comes from a buyer's agent on other opportunities that are comparable... my goodness, from my perspective a buyer's agent is a no brainer!!!  What is it that makes the "investors" think that 3% of an unsound investment = a great deal??  I just shake my head....

I would like to thank all my clients who understand the importance of having a dedicated buyer's agent, and who do respect my time and effort.  Not all agents are created equally, and when you disrespect a professional that takes his job seriously by being a thoughtless selfish "investor" you ultimately just hurt yourself.  In the world of agency it is better to be friends with the top agents, rather than known as a snake.  What seems like a huge world of investment get's a lot smaller as you head to the top.  Even the majority of Broker's suffer from poor business practices, bad debt, and laziness.  What things seem on the surface are often an illusion.  

Sorry for the rant, I do have thick skin and brush off those that act in such a manner without care.  However, I never forget who they are.  You're either a game player, or business person.  

Hopefully you can see the difference and choose to be the latter!

35%

10% PM

10% Capital Reserve

10% Vacancy Reserve

5% Repair Reserve

That leaves NOI. From here you can subtract out other costs like:

Water, Refuse, Taxes, Insurance, Snow, Lawn, LEASE UP, book keeping, etc to determine your Cash Flow

I loved working in Cleveland during my college years.  It seemed to have a lot of potential as a city though suffering from issues similar to Rochester.  I loved all the swing bridges.  My mentor was a local and he took me to the sweetest spot downtown where the view of the bridges was phenomenal.  I would defiantly love to buy that location if I could find it on a map.... It's been YEARS!  

When is the bus tour??

depends on exact location, condition, sq footage, and number of baths / beds.

Generally speaking for the more defered stock which is typical in that area ~900 for three bed 1 bath apartment. 600 - 700 for a 2/1 apartment. 925 and up for a 3 bed house.  1100 and up for a 4 bed sf.  Better location & condition means higher rents.  There are high rents in Sibley track which is 19th.  

I'm talking specifically 19th, not blurred borders.